The Real Money Show
The Real Money Show - January 9th, 2016
And welcome to The Real Money Show. The number to start investing as always is 1-877-8 Silver. Go to guildhallwealth.com. As well, the investor kit, the precious metal advisor is all things you should have in your arsenal for investing. And a reminder, the special is still happening. And we'll get to precious metals here in a moment. But I want to mention this now into what the end of March about. So you'll receive one gram of gold for every $5,000 US invested in RSP account that goes through the e-store as well and the depository till the end of March. So take advantage of that. Little later on in the show, we'll have an interview with Mark B. Bailey. He's an investor, an analyst. And you can go to his website to check it out in the interim. It is Dimidvil, D-E-M-E-A-D-V-I-L-O-E.com. Dimidvil.com. Guys, we'll get to that in just a bit. Jeremy and Darren, you guys are set to go. How was the break? Good break, John. We had a lot of time off. We ran a couple of shows, which we did some pre-recording for prior to Christmas break. I hope everybody enjoyed themselves. Took time for their families and had a safe, happy, and great New Year's as well. We hope everybody's going to have a prosperous 2016. We know that the gentleman coming on today is certainly banking that the gold and silver markets will be amongst those markets that do provide prosperity for people this year. And Jeremy's going to have a great interview with Mark. He is a well-known analyst and he's super tied into the community. He's certainly very jovial and he's definitely very, shall we say, Gerald Solente-esque in terms of his demeanor. But he's certainly a great man and has lots to say about the markets, so we're excited to have him. As we're taping the show here on Thursday, we've seen actually silver on the heels of what's transpiring in the Chinese and, of course, rest of the markets as a result. Start to move ahead here. Gold up in over 1100, while silver is treading into the 1430-1440 range, which is the first decent move we've had in over a month in silver. And in gold, it's been about six months since we've had a move back up above that $1,105 range. So very nice to see. And, of course, it comes, unfortunately, on the heels of that downside negative news in Asia. But what I thought we would do in today's show, especially given the guess we're going to have, is we'll take some time here in the first segment to talk a little bit about gold in 2016. I brought with me an article by one of my colleagues and a great analyst in the gold market. His name is Alistair McCloud, and this article was published all over the internet. I picked it up. It's called Gold in 2016, very simple title. And it has a bunch of information in it, which I'm happy to share with people, will certainly provide that in the precious metals advisor coming up in the next few weeks. And, of course, the first thing he mentions is advanced signs of a global slump in economic activity emerged in 2015. So here we are in 2016. We've set the tone in terms of what we've set on our show and discussed at length about the necessity to have physical, gold, silver, platinum, palladium, and natural fancy colored diamonds in your portfolio and the reasons why. And again, we do believe that these things happen in cycles. And right now is one of them. And we are seeing those advanced warning signs flashing all over the place. And if you could go back to a 2008 show and we'll try to do it at some point, we'll see if our sound technician West can help us out with that. We'll go back and get an earlier show that we produced in which Jeremy and I sat at these very seats and encourage people to get out of the market because the signs were being flashed. You've got the Toronto real estate market. Again, I read just today another 9% plus year in the real estate market. Again, not sure how long that can last. I have a lot of friends that are in the real estate market. They don't always like me. I'm very opinionated when it comes to real estate. But in this article, Elastair McLeod is essentially saying that there is great amount of warning signs that are being flashed right now that something happened in 2008, 2009 could be happening already. And of course, could be coming to fruition in 2016. He says, and I quote, gold is now being in a bare market with inside the secular bull market. Since September 2011, major central banks in the advanced economies have implemented policies that have covertly suppressed the gold price while they have overtly inflated asset prices. This has led to valuation extremes in all asset markets. I know one of your questions today, Jeremy, will probably take Mark into telling us a little bit about how he evaluates the markets, especially one that he's very familiar with, the S&P 500. And again, he says here in this article, we can be certain that today's unprecedented buildup of price distortions will be corrected eventually by market forces probably in the coming months. The commencement of a crisis has already been evidenced by the collapse in energy and industrial commodity prices, causing major problems for nations and international companies with US dollar obligations and suddenly finding they lack the revenue to service them. The scale of commodity related losses is not generally understood, but cannot be ignored for much longer. We've set it at length at this show, ad nausea. In fact, that in fact, you are getting one of the greatest bargains that you'll probably experience, at least in our lifetimes, when it comes to gold and silver at these prices, they have been lower in the 10, 12, 15 years that we've been a part of these markets. But where we are at this point in time, relative to where we were, and how undervalued they are, is a testament to how the powers that be have forced people, brainwashed people, pushed people, bullied people into believing that things are okay on the outside, that gradual gains are happening in the economy. Yet every day we're seeing layoffs occur. I saw two more today. I saw a man from this very radio show, Lou Skisis, who our listeners are probably very familiar with, post something on his Facebook blog today about the losses and the job sectors that are occurring at big name companies, big brand name companies. So again, that's telling us that all is not rosy. So again, we want to encourage people to understand all of these various things, and that is important when it comes to gold, silver, platinum, palladium in the physical form. One eight seven seven eight silver online to guildhallwealth.com. As Darren mentioned, the precious metal advisor and the investigator's well Jeremy. There's lots of ways to get involved in the market. One of the easiest ways to get involved in precious metals, and we find that if for anyone new to the market, this is the best way to do it. You just buy some physical product. You take it home. It's not like buying a stock. One of the things that anyone getting into this market for the first time will see is that the price of silver right now in US dollars is about as we're taping the show today on Thursday is trading around 1434. So let's just say it was $14. If you wanted to buy a hundred ounce bar, you might be paying over 15.25 per ounce. And some will say, well, what's the difference? How come I see $14? But now I've got to pay a dollar a dollar 30 over that what I don't understand. What's the difference? It's a little bit like cotton and t-shirts, right? The $14 is the cotton and then the 15 plus is the t-shirt. So we're talking about a fabricated product here. So the if I talk about spot price, we're talking about quote unquote the paper price of silver, not the fabricated price where a refinery like the Royal Canadian Mint has refined it, proven that it's 100% pure or 0.9999 pure, stamped that product with a serial number saying that it's come from a globally recognized refiner, etc. So there's always going to be some cost added into that. But that said, what a great way to get involved in the market. Buy some physical product, put it in your hand, understand the weight of it, what you're actually buying, almost feel the history of it, that this has been real money and a way to store wealth for thousands of years. And you can simply take it home. You can also, if you get to a certain level where you have to be concerned about insurance and whatnot. So let's say you're buying over 500 ounces of silver, you want to be you're starting to say, well, I don't know if I want to secure that home. We have custodial services at Guildhall whereby we can assist you to store that product. It's your product. You're going to get your serial numbers. You're going to have access to the to the vault to be able to go and verify your product. And it couldn't be easier. There's a very low cost of doing business for that. Please contact us. We'd be more than happy to give you the details. And then of course, what's been very popular is the registered account. So whether you have a lift, a riff, an RSP or a TFSA, you can now purchase actual physical bullion within that registered account and get the tax savings. You know, we're coming up to tax time. So we do have a promotion right now that for every $5,000 US spent, you're going to get one gram of gold. So what a great way to again, get involved in the market, get something back in return and also be involved in a market that as we all believe is undervalued at this time and is a great way to store wealth. And when we look at the last year, we see that actually gold and silver fared very well. If you were holding it and you used Canadian dollars to purchase it, the Canadian dollar lost over 20% last year. And gold and silver in Canadian dollars through the year 2015 were around break even against the US dollar. So what a great that was a great way to hedge the market and hedge the value of the dollar. 18778 silver online to guildhallwealth.com. Your RSP contributions is the way to do that. The e-store is something you should check out as well. The precious metal advisor and the investor kid 200. Yeah, get back to the article that we were talking about just a little earlier there. To understand these markets and know that you're excited about owning them is to really delve into why you want to diversify in the first place. And this article that I was mentioning before called gold in 2016 by Alistair McCloud goes on to say that. And I quote, "The rapid expansion of central bank balance sheets since the Lehman crisis is the ultimate phase of a process that can be traced back to at least the 1980s starting in London, US and European banks at that time took control of securities markets. Since then they have increasingly directed bank credit at the expansion of those securities markets principally through the development of over the counter or as we refer to them OTC derivatives, but also by dominating bond and equity markets and regulated derivatives. And essentially what this goes on to say is that there is a reckoning coming of sorts that will involve certainly gold among others as a way of protection and insurance and really the other side of this great build up of forces in these tremendously enormous paper markets, which certainly the average person just does not take the time nor needs to understand. Suffice to say, if I have wealth and I've made it through blood sweat in tears as most people have that listen to this show, I want to know how to protect it. This is not the end all it says all John, but this is the one I would say one of the most underrated and under valued markets precious metals that I've ever come across. And it is an opportunity that I think is once in a lifetime opportunity to put something into and get the benefit beyond that of the RSP, the TFSA, the tax shelter, these are all things that come together to help you in this space and time. And it would be a shame as a listener if you missed out on an opportunity like that. You know, you're buying what we feel at the bottom of the market. Now the market could go down a little further. We don't know. But the question is you want to look at the range and say, okay, is it much cheaper today than it was several years ago? The answer is yes. Is the stock market cheaper than it was a few years ago? The answer is no. You can learn more about the about having gold or silver in your portfolio. We're doing a seminar actually next Wednesday, January 13th between seven and nine. That's going to be at Young and Finch. At the Questrade offices. We find that this is a great way for individuals to learn about the investment. Just take their own little investment of time to learn about how it could work in their portfolio. And if it's not right for you, okay, you at least explored it. If it is something that you were looking to do, you get to meet the staff at Guildhall who's going to be assisting you to get the precious metals into your portfolio and learn how it works and get all the details. So we find this is a great way to educate potential customers on the market. And in fact, actually, we'll be having some of our own customers who have already done it come to the seminar to learn a little bit more as well. So you can get their opinions and their their feedback on what the process was like in terms of getting the account open, making their the first purchase, et cetera. So this is a really great event to come to to learn about holding precious metals in a registered account. And again, that's going to be next Wednesday, January 13th between seven and nine p.m. Or the Young and Finch office. Yeah, correct. That's where it's going to be. We'll take a quick break. We got to our interview coming up next. It'll be Mark Meade Bailey's financial analysts on decades and decades of experience in the financial markets. Big fan of gold and silver. He'll talk about that with Jeremy in just a moment here. In the meantime, the numbers one eight seven seven eight silver online to guildhallwealth.com. The precious metal advisor, which Darren mentioned earlier, you should be getting should be coming out very soon. Make sure you get your copy. And again, up until the end of March, when you purchase for every wall $5,000 invested in RSP account for precious metals, you get a gram of gold that covers the e-store as well and depository accounts real money show right here on talk radio ham 640. And back with more of the real money show, the numbers one eight seven seven eight silver online to guildhallwealth.com. Well, welcome to the show here. Mark Meade Bailey, you can reach him at demedeville.com. That's D E M E A D V I L E E dot com to veedmill.com. He's an investor and financial expert S and P 500 for many years and decades of investment advice and knowledge and a big fan of gold and silver as well. Mark Meade Bailey on the real money show. Mark, great to have you on the show. Thank you for taking the time. To be here, Jeremy. Thanks so much for asking me. It's a great opportunity. Yeah, Maize. I'm really looking forward to getting getting right into it with you. And the first question I have is, you know, as someone who worked in the banking sector for over 10 years, oftentimes our opposition, we would say, how did you how did you come to gold? What is it that you like about gold? Well, after leaving banking in '92, I was trading options for a lot of different companies and so forth. And my prior bank manager, Societe Jenerau, approached me in 1996. And he said, would you be interested in learning about the futures market? I have a friend who's a futures trader and he wants some assistance. So I said, sure. And I became very savvy with initially the S and P 500 futures market. And on Sundays, I would go to my local athletic club. And we would sort of have an informal investors round table. And one subject would always come up at these round tables on Sundays was gold. There were people who were very, very interested in the gold market. And so I started to take an interest in it. And about 2009, 2010, I took on a client and we started trading things beyond the S and P 500, including oil and gold and some other markets. And he wrote to me one week. And he said to me, would you mind writing just a brief paragraph about gold for me? And I said, sure, I'd be happy to do so. So I wrote a little paragraph, sent it back to him. And he wrote me back. And he said, thank you. And that essentially became really what has been a string of 320 now consecutive Saturdays of writing the gold update. And it started just going to one person, then I copied about four people, and then it was up to a dozen, and then it was up to about 70. And I thought, you know, I should put this up at my website. So I put it up at my website. And then I wrote a note to, I'm sure many of your listeners know this fellow's name is Bob Moriarty, who runs 3-2-1 gold. And so I sent it to Bob. And I sent it to him just as a personal, you know, here's my thing on gold at the moment. And I remember waking up the next morning and the counter on my website, they've gone ballistic. I get, you know, 50 hits a day. Suddenly I had 2,000 hits overnight. And it had not dawned on me that he'd taken what I'd written, I'm very benevolently put it up for the world to see. And that is when I said, boy, I really got to sink my teeth into it because I'm in it now, baby. So yeah, let's talk quickly about your website. Where can people find you so that they can learn a little bit more about you we're going to learn a lot more about you today, obviously. But just as they're listening along, if they want to jump on your website, what's the site called? So it's dub dub dub. And it's d-e-m-e-a-d-v-i-l-l-e.com. Think of Think of Meadville, Pennsylvania with the letters d-e-d in front of it. So we pronounce it d-medview.com. And then there's a sub site that's part of that site, which very simply is called the goldupdate.com. All one word, the goldupdate.com. And that brings you essentially right into the same site. And everything there is comprehensively without charge. So you can just click on all the different lengths and go around and look at all the ways that we look at markets. We look at markets a little bit differently than most people do that you find in standard trading platforms. We try to go the extra mile and look through a different window at the same market. And maybe you get a different impression of what's going on. Excellent. And we'll put those addresses up on our website as well on the realmoneyshow.com. And we'll tweet them out. And we'll also put them in the newsletter so everyone should sign up for that, of course. So you've been doing this for a little over five years, obviously with a good background in finance. We're going to go a little off script here. What have you learned about about gold in the last five years, six years? It's a super duper question. I mean, the whole thing about gold that I've come away with, and we make this point every week. I say gold, the essence of the gold story, if you will, is that gold is a currency debasement mitigator. The more and more currency you have, the more valuable your gold becomes simply because the amount of fake currency running around the world is created at a far faster pace than is the amount of gold that's taken out of the ground. And so once I got my arms around that, I started making very close calculations using data from the St. Louis Federal Reserve Bank because they published the M2 United States money for supply statistics going all the way back to the end of 1980. And then putting in the price of gold and watching that a very interesting phenomena as money grew through the 80s and 90s, the price of gold lagged, and of course interest rates are much higher than so you had alternative investments. But once you got into the new millennium from 2001 on, you begin to see the price of gold and the level of the United States money supply rise in parallel. And what happened was that educated me right there, I say, aha, now I get it. This is this whole offsetting of currency debasement. Then gold got ahead of itself in 2011 and I specifically wrote that it did. But since then, it's horribly undershot to the downside. And it's now, by my evaluation, worth about half what it should be. So now along that line, you've recently recommended to readers to contact their money managers to inquire about what we're talking about today, portfolio insurance. And there's various different ways you don't necessarily have to do just gold. But even Dennis Gartman for now is saying that people should get out of stocks. Should we be walking or running to those exits? Are you concerned that the market is, the stock market is not going to be moving higher from here? Well, my concern is that the market has not already been moving lower. Now it finally seems to be moving lower. But I'll tell you, Jeremy, in all these years of watching markets and so forth, and this even includes the dot-com days. I never in my experience have I seen such a financial dislocation. I think that the S&P, which closed the year at 2044 last week, is trading at about double as high as it ought to be. And gold is trading at about half the value. It should be. One of the things that I do is, instead of listening to what everybody else says, I like to get in there and do the numbers calculations myself. So every day, in fact, in real time, I actually calculate the price earnings ratio for the S&P 500 as a whole index. And if anybody can do this, you can take an Excel spread sheet and take the price of every stock divided by the earnings. I use trailing 12-month earnings because those are honest earnings. I don't use what some analysts thinks are going to make next year because they always say it's going to be more and a lot of times it's not more. And you just do the math. If a company has negative earnings, I'd been never going to find them earnings per share of $1 share. So if it's selling for $40 and not making any money, I give them a buck, and you're paying $40 for something that earns a buck. And then you take all these PEs and you multiply each one times the capitalization waiting ratio of that stock and the index, and you add them all up, and I can give you a live price earnings ratio at this moment. It is 43.4 times. You'll hear a financial televised media, "Oh, it's 18. No, it isn't." If you sit down and actually figure it out, it's 43.4 times. And we're taught in business school that 20 is expensive. So I look at the S&P as being at least twice as high as it should be. The problem is, Jeremy, people say, "Well, if I take all my money out of the stock market, where am I going to put my dough?" Right? So you think, "Well, have you ever thought about just putting it to the side, raising a little cash, as opposed to keeping it in a risk capital environment, or better yet, why not buy some gold?" You know, gold is down about 40 percent from its all-time high, which was back on the 6th of September 2011. It hit $1,923 a share. I have some hard gold currency, and I'm glad I haven't gotten rid of any of it. I'm fortunate to have what I have, and my philosophy is, you know, the day will come to sell, but you want to do it when everybody wants to have what you already have. So my philosophy is basically, "Why would I want to sell my gold around $1,000 or $1,100 an ounce? If in the future, I'm going to be able to sell it for over $2,000 an ounce." Yeah, I think we see something similar as well in terms of just listening to customers and why they're moving into the gold market. It's a sense of, "Well, I don't know if the stock market's going to give me anything, and I'm putting a lot of risk out there on the chance that it could come off 20, 30 percent, because, you know, the market's gone up for seven years, six, seven years." So, I'd rather take a risk with gold that's clearly undervalued at this point. So I think we are seeing something like that, but to talk to a lot of listeners, you know, you sound so confident when you say, "Well, I'm not going to sell it now if the price is going to be much, much higher in the future. If we were to look into the crystal ball for a moment, how do we know that the price is going to be higher in the future?" Well, there's a lot of rationale for this. I think that if you think about gold having been around for 5,000 years since biblical times and so forth and so on, it generally rises over time. I think what we're seeing here has been kind of a four-year bump in the road. I'll give you a movie analogy, and this is not a religious opinion. This is just using a movie. There was a famous film director from back in the old, say, mid-1950s named Cecil B. DeMille, and he did a film called The Ten Commandments. And if you think of gold as faith, throughout the first two-thirds of the movie, you know, faith is the insane, gold is good, and we can think of that as gold has risen over all these many centuries and so forth. And then about two-thirds of the way through the movie, Charlton Heston, in the role of Moses, of course, he goes tromping up Mount Sinai to get the tablets, and while he's away, all those people of faith run astray and, you know, faith is out and it's just as if gold today is on the out. It's no longer the end thing, it's on the out thing. But fortunately, by the end of the movie, faith wins the day, and in the real life movie, we think the gold will again win the day. We'll take a short break. The number 18778 Silver, more details on how you can use your RSP and TFSA for room with precious metals. You can go to the website guildhallwellth.com for that, get the precious metal advisor. Mark Meade Bailey going to stick around the part two of the interview if you hang on, it's coming up in just moments here on The Real Money Show. Talk Radio, M640. And The Real Money Show continues. Guildhallwellth.com is the website, the phone numbers 18778 Silver. We continue our interview now with Mark Meade Bailey on The Real Money Show. Okay, we're back with Mark Meade Bailey. We were just talking previously about faith in the gold markets, and that right now that faith, I guess, the moral of the story when we look at the Ten Commandments, the moral of the story is that faith is being tested right now. Is that correct? If you think about the notion of what will be a catalyst, for example, to get gold going. Part of the problem with the stock market, per se, it's the illusion of a savings account versus its reality of being a risk capital market. What would be a catalyst to kind of reverse this, get people looking more towards the precious metals away from the very, very expensive equity markets? What would be something like a currency failure? The great Richard Russell with whom some of your listeners may be familiar noted a few years ago that what I like to call photo currencies, fake currencies that are not any foundation, such as the dollar, the yen, the euro, so forth. They tend to have a livelihood of about 40 years, and then there's the reorganization or something else. It happens. If you think back about 40 years to Richard Nixon, he nixed us off the gold standard about 43, 44 years ago. You kind of start to wonder how much longer the Federal Reserve note is really going to be viable or if it gets reorganized into some other form of currency. I'm very surprised that the euro made it past four years. It's been about 14 years with all these companies, excuse me, countries that look at debt in different ways, so forth and so on. But something is going to have to break. We may be seeing the beginning of it now. I think it's too soon to tell. There's a lot of angst about the stock market having come off through the first days of this week to be sure on a percentage basis, this is nothing. I think I really like what you were just saying about how on our show, we talk about that savings is in trouble. With low interest rates, you have to take a risk. I think that the stock markets have become pseudo savings accounts. People potentially have a lot more invested in that, psychologically speaking, than just having funds in there because they don't have that traditional savings account anymore. What we're talking about is a paradigm shift back to, well, wait a minute, that's not necessarily, that savings means not taking a risk. How do we ensure or how would someone be assured that physical metal would be a safe haven in that regard? Obviously, that's tough when the faith is being tested, for example. As we're starting the year, we want to get into some predictions. We've got to look into a crystal ball, of course. We just have to do that. But let's talk about bagos. Can you introduce the audience to bagos and have I pronounced it correctly? That's how I pronounce it. It looks like bagos, B-E-G-O-S. I like to get a little European flair in there, so we'll put an excellent view over the E because the E actually stands for Euro. It's an acronym. B-E-G-O-S means bond, Euro, gold, oil, and S is the S and P 500. To me, in my own selfish, arrogant opinion, these are the world's most important markets. They're all intricate to the financial condition of major companies. When I was studying the S and P futures, I wanted to see the influence of, for example, the bond is the cost of debt on a company. The Euro is the cost of the dollar, if you will, overseas revenues. Gold is the cost of maintaining wealth. It's sort of a de facto mitigate against currency debasement, as we've been saying. By the way, gold plays no currency favors, and we have data to absolutely prove that. Oil is the cost of energy. And then, of course, the S and P 500 is strongly influenced by these other four major markets. And I prefer to look at the S and P 500. Traders will joke that the Dow, which is very popularly quoted, that the Dow is the index of which our parents used to look at the big sexy numbers for the televised financial media to bandy about. But the focus, the real stock market, the real best cross-section of the United States market, is just measured by the S and P 500. So what we found going forward is that each one of these five markets really is affected by the other four. So you can look at gold as it is affected by the bond, the Euro, oil, and the S and P. So there is, at the website, one of the pages is called market values. And you will see for each of these five markets, its current price vis-a-vis where it ought to be on a technical basis as to how these other markets are flexing over time. Now, that's a valuation that's very different from the actual currency debasement valuation, which is a much higher level for gold. So, but for a near term, you want to see it's gold too high, vis-a-vis the other four, is it too low, vis-a-vis the other four? And what would we see right now if we were looking at that? I think it's just about spot on. In fact, I can tell you, I'm just going to click on a thing. Actually, since we're pushing up today, we're seeing gold moving above. It's what we would call its relative bagos valuation. But it's not overtly too high. The rule of thumb is when price passes up through the valuation line, which you would see at the site, you want to be on the long side of that market and vice versa. I think though, for gold, gold is something that you basically want to buy when you see an opportunity and you just want to put it away. You don't want to sell it. Now, I do trade the gold futures, and that's different. I will buy or I will sell based on shorter term movements. But for the long haul, ain't nobody taking my coins away from me. Okay. Mark me, Bailey, it is time. We need your predictions. Looking into that crystal ball, what do you see going forward? Well, for this year, what are the things we've emphasized is coming out of last year in some of the gold updates? How will we know when the bottom is in? If you look at a structure, a technical structure of gold prices overhead, there are all kinds of boundaries and barriers through which we have to trade. That having been said, without actually crunching the numbers, it seems to me that gold moves a little bit differently than most markets. Most markets will sell off faster than they rise. Gold sometimes gives the impression that it rises faster than it falls. I would be very happy this year, and I would certainly place a gold target this year of 1280. We're currently trading 1108. I would say 1280 is an important threshold to get to. The reason is, if we can get there, we will probably turn the track of the 300-day moving average, which is still declining for gold. We'll get that to start to turn up. I think we clear 1280. I think you get that 300-day moving average turning up. That will tell us that the bottom is in, and it would be a great target to get to in 2016. Along with that, if we were talking about silver, I'd like to see silver get up to about $18 announced this year, and it's currently trading $14.35. I don't think anyone would be upset with those type of gains. Just before we let you go, Mark, this has been something I've just been thinking about all day here while we've been talking. How are your friendships with your buddies that you were hanging out with from the financial sector? Are you still friends with them? Oh, no, it's terrific. I am blessed with surrounded by wonderful people in the roundtable. The readership at the website, I cannot count how many wonderful testimonials that I receive, and there's some at the testimonials page. The thing I'm amazed at, I've gotten almost zero hate mail in the five years I've been doing this, and I think that at the end of the day, people know in their heart of hearts that gold will, as you like to say, will out to the upside over time. I think if you were to approach even the most ardent gold-hating bear out there, and you bet them a thousand bucks that they shall see gold 2,000 in their lifetime, they're not going to take the bet, because I think they know in their heart of hearts that gold has to go higher. Terrific. Mark, thank you so much for joining us on The Real Money Show, and we look forward to having you back. Love to. Let me know. Okay, we'll do. Thanks, Jeremy. And we'll take a quick break, guys. The numbers 1-8-7-7-8. Silver got to thank Mark Meade Bailey again for joining us for the last couple segments here. You go to the website guildhallwealth.com, pick up the precious metal advisor, the investor kit learning about RSPs, TFSAs, and other ways to invest with precious metals, and a reminder as well, till the end of March, you invest $5,000 U.S. in our RSP or the East or Depository account. You'll get a gram of gold courtesy of Guildhall. We'll continue. We'll talk diamonds on our next segment here on The Real Money Show, Talk Radio AM640. The Real Money Show right here in Talk Radio AM640, the number 1-8-7-7-8. Silver online to guildhallwealth.com or guildhalldiamonds.com is where we're going to go. Right now, Jeremy, talk to me. Diamonds. Well, December was a great month for natural fancy colored diamonds. There were a lot of diamonds being sold, a lot of people at the end of the year, I think saying, "Okay, wait a minute. I need to make this decision and get involved." As we're starting to see prices will move a little higher because of the exchange rate, we're going to do our best at Guildhall to try to mitigate that in some way so that Canadian investors can take advantage of the diamond pricing as it stands now. Natural fancy colored diamonds are one of the best investments I have ever seen. Those that get involved in this market do not have to worry about watching a price daily. They do not have to worry about seeing an investment go down and have to worry about, "Well, when is it going to come back up?" You can look at the returns on a 10-year basis and a five-year basis and you see nothing but a solid uptrend. We have seen that with the fancy colored diamond research foundation, they're really starting to put the pen to paper in terms of the numbers that can happen in this market. Specifically, there was a great article that came out that they published that talks about how pink and blue diamonds have just performed phenomenally and have had zero volatility whatsoever. Really strong color and good clarity for yellows have also had a similar track record. For anyone looking to make a conservative investment that they're willing to put in for the long term, they should strongly consider having natural fancy colored diamonds as part of that portfolio. Define long term. It can depend on the investment size. What's great about natural fancy colored diamonds is the larger the investment, the more rare the diamond you're buying. Value and rarity are closely linked in that way. If someone is investing over a quarter million dollars, they're not going to have to wait 10 years before they can look to find another buyer at that point. Some people don't look to sell their diamonds at all. It's part of a legacy. They buy it, they've collected it, they know that this is something of quality. It's like buying a group of seven painting. It's not going to go down. It's something that you can put in the family and just becomes part of the assets that the family owns. Also, some people are buying them for family for legacy reasons because it's not so easy to sell off a colored diamond in a day like you could with gold. If they're passing it down to their kids, for instance, they know it's not going to be sold right away. It's still going to be worth something for them. What we're also finding as well, and then we'll answer the question, is that a lot of people are turning to investment grade natural fancy colored diamonds for jewelry because they like the idea that buying quality means that that diamond ring or pendant or earrings are going to be worth more in the future than the expense paid out today. Of course, they're buying it wholesale because Guildhall doesn't have to worry about Robin's egg blue boxes and massive retail stores. So you're able to buy a better quality diamond for a less price and you know that in the future, it can be worth something. That just makes sense. So rather than buying a depreciating asset, why not buy something that is of better quality and appreciating. Now, for investments, if someone were buying a fancy yellow, for instance, a one-carat fancy yellow, I would expect in order to have the time have been worth it. 15-year minimum is probably what you're going to be looking at. But I think in terms of the returns and we can discuss that in a one-on-one meeting at Guildhall, I think anyone would be happy with the type of returns that they would see knowing that there is no effort put into that 15-year period. 18778 silver online to guildhallwealth.com or guildhalldiamonds.com as well. There is very little effort involved. And in fact, that's what one of the probably the largest draws in terms of understanding what a color diamond can do for portfolio is the fact that it's very low maintenance. And that's a wonderful aspect of an investment such as this one here. I wanted to say something, Jeremy, you had mentioned the FCRF, which is an acronym for the Fancy Color Research Foundation. And in the next couple of weeks, we are actually having an interview on this very show with Eden Rakmanoff, who is chairman of the board of the FCRF and president and managing partner of Rakmanoff Diamonds. Now, I wanted to just say why it is that we believe the FCRF is an important foundation. They were established in 2014 and their aim is to introduce transparency, fair trade, and the highest of ethical standards to the fancy color diamond wholesale and retail segments. Now, as many people know that have bought diamonds or gone through the process, one of the difficulties is that there's no centralized pricing index for colored diamonds. So a lot of times, because this relates to the four Cs of the diamonds, you're getting different pricing for different diamonds because no two diamonds are alike. Unlike an ounce of gold, it's made in the same way fabricate the same way at the same purity, we can attribute the same price to those two ounces with a diamond, you cannot do that. So, the secondary and we would consider this to be an insurance policy for the firm. The secondary approach to take when you're developing business in the natural fancy color diamond space is to have membership in and partnerships with foundations such as the FCRF. And we're going to have, luckily enough, Eden Rakmanoff himself on in a couple of weeks. And he is going to discuss the FCRF initiatives, what's happening, what's transpiring in the color diamond segment. And of course, we can look at this FCRF a little closer. Now, this is important because going forward, especially in 2016, as we expect on the heels of what is developing in the rest of the world economic picture, the idea that there's going to be a huge problem currency wise is ongoing. And earlier in this segment, we mentioned the fact that there is a difference in the US and Canadian dollar and we know where the Canadian dollars are. If you're a listener, it's becoming very difficult to justify traveling down to the US or buying in US dollars, because of course, the exchange rate is very expensive for us. And you having been to New York over the holidays, we'd know that a whole too well, John. So again, this is an opportunity for you as a listener to tune into something that's very important. We as a firm at Guildhall Diamonds, subscribe to the belief that in having the highest integrity and ethical standards, one must subscribe to these types of foundations must be members there, because this only adds to the ability of them to have good structure and governance within the organization. Now, not only will we have that interview here, but I think that we'll be able to get Eden to open up a little bit about where he believes color pricing is going. And I think it'll be a journey that our listeners will be happy to take. Yeah, when I've had conversations with him at the JCK show in Las Vegas, he's always just brimming with knowledge in terms of what's going on, not just in the specific day to day market, but also the market as a whole in terms of the types of companies getting involved, how jewelry stores are starting to get involved, and the overall trends, he's right on the forefront of all of seeing all of the trends. And he educates the retailers on natural fancy colored diamonds. I mean, he wrote the book. So he's an author on natural fancy colored diamonds. And so he, you know, besides just being an expert on diamonds themselves, he's an expert on the market as well. So we're very excited to have him getting back to colored diamonds themselves, as we were mentioning earlier, it's key for us at Guildhall to help Canadians get involved in the market to protect their wealth. And with the current exchange rate, it's becoming a little more difficult. Like I said, we're going to continue to do our best at Guildhall to provide the value along with the opportunity so that Canadians can get involved in this market. So whether it's, whether it's buying it for for portfolio insurance, knowing that, okay, here's an asset that will not depreciate. It's rare. The demand is constantly growing, while the ability to get it out of the ground is always a trickle. So the supply demand aspect is always there for in terms of investment, whether it's portfolio insurance, whether it's as part of a legacy portfolio to pass on to kids or family, whether it's to put into jewelry, where you just say, you know what, I'm not going to buy, not going to say second rate, but the not best quality product at retail prices, I'm going to buy the absolute best quality at wholesale prices and be able to continue to enjoy it and also know that that asset is accruing value all the time. There's so many reasons to get involved in this market. If you need more, you can contact us at guildhalldiamonds.com and we'd be more than happy to show you the resources to help you to understand and educate yourself on why this is an alternative asset class, but what it can do for you. Wasn't there a time when ping diamonds were not readily available? You could pick up one from you guys, a good one fairly easily, and then yellows were abundant. Now it's it's not like that anymore, is it? Well, when we first started this back, seems so long ago, but back about 10 years ago, this was a market in yellow diamonds in particular, which was more plentiful, which we could take a look, we could take a look on a monthly basis at around 30 or 40 diamonds a month, and then we could take our pick on the best and the finest of the bunch. And again, with respect to each different saturation of diamonds, so you have fancy, fancy intense, a fancy vivid, there are a few others, but those are the mainstays, the fancy vivots have become near impossible to get in the one plus two carat range at a reasonable price. They're available, but they're being put in the back of the the safe more frequently and not shown as as often as they used to because people want higher prices for them. This happened to the pink diamond market already. And of course, this is what's pushed the pink diamond market in many regards to a market which is hovering on the 20 to 30% per year gain that we've seen in the last number of years, especially in the last 36 months. Now again, to explain where this has come from, we've never seen a plentiful supply of red diamonds, but once upon a time, blues were more like pinks. You had the coal in mind in South Africa that was producing more blues as a side effect of white diamond mining. And you could get them more readily than you could than you ever could before. And of course, at that time, there were some blue diamonds comparatively speaking to pinks that were in the same price range. Now when that mine has closed and it's long since closed, we've seen a drop off literally in blue diamonds, you don't see them come to market very frequently. And you're now seeing, you know, carrot worth of blue vivid I F diamond running anywhere up towards three quarters of a million dollars at a wholesale pinks again, one carrot pinks running up to anywhere between three and 500,000 a carrot for good vivid I F diamonds. And if it's an Argyle, even more, you're adding as much as a 30 to 50% premium because of its Argyle status. On yellows, we expect the same thing to happen. I do over time in the next 10 years, expect that there will be a big increase in value solely due to the fact that we're getting less of them coming out of minds. And that we see in less places in the world availability of those types of diamonds. So john, you're absolutely right. Had a person already dove in, they've seen tremendous gains, but a person buying right now, the best is still yet to come. I mean, especially as it relates to pink diamonds, if the Argyle mine continues to go the road, it's going with the deep mining that it's doing, it's giving us every inclination and every warning sign that it's coming to an end. That mine is not going to be able to produce diamonds much after 2018, let alone pinks. Because whites are the mainstay of the diamond. If that happens, again, you're going to see a tremendous bump and you could see in one year, it wouldn't be unreasonable to think that pink diamonds, the high quality Argyle type that we're used to holding here at Guildhall, could jump up twofold. It could be 100% gain in a year because there's nothing available. That's right. The diamond, the diamond mine shuts. The suppliers are shut out. And what you have is what you got. That's it. It's like a great artist dying. You get no more paintings. That's it. There are no more minds coming online either. So we want to make people aware of that. And just a minute before we go here, we'd like to close off the show by letting you know, again, to pay attention to what the markets are telling us, we're getting some rumblings in both gold and silver. Important to pay attention. Buy yourself and do yourself a favor. Own physical gold, silver, platinum, palladium. We have a fantastic seminar coming up this coming Wednesday for listening to show on the weekend. Please call us get your seat reserves as limited seating at quest trade. It's going to be easy to get all of your questions answered regarding any type of RSP as it relates to holding gold and silver. Talk about the cost of transfer, what you have to do to get it from your bank to this new account. All of those things will be answered and explained there as well as a presentation on gold and silver itself. You have the promotions that you'll talk about on the clothes there. And again, we want to thank Mark Meade Bailey for doing this interview today. It was a fantastic interview, very insightful, and we'll have it posted up to our YouTube channel shortly. So thanks again, everybody, for taking the time to be here with Guildhall today. We got that promotion that Darren is talking about. I'll mention that in clothes. And that is when you invest 5,000 US in precious metals, you can do that either through the E store or depository till the end of March. You'll get a gram of gold that is 5,000 US dollars in RSP account. The number to start investing 18778 silver online to guildhallwealth.com. We mentioned the precious metal advisor a couple of times during the show. You should take advantage of that and natural fancy color diamonds anytime. Call the guys for consultation and get started investing in both those directions. This has been a real money show on talk radio, AM 640. Hey Merry Christmas, man. The Countdown to Christmas celebration continues on W Network. That is where I thrive. It's the time to shine. All new movies every Thursday to Sunday. We deployed Christmas joy with three brand new holiday series. Thanks so much. Have a great holiday. Back-to-back movies every day will have you jumping for joy. Hallmark channels Countdown to Christmas all season long only on W stream on Stack TV.